ASEAN - India

·The ASEAN-India Trade in Goods Agreement was signed at the ASEAN Economic MinistersMeeting with India on 13 August 2009 in Bangkok, Thailand.

·The FTA has entered into force on 1 January 2010.

·The agreed modalities for the FTA in goods between ASEAN and India are as follows:

I.Normal Track (NT)

Coverage: 80% of tariff lines and 75% of trade value (imports).

Tariff Elimination:

ASEAN 5 & India

Philippines & India

India to CLMV

CLMV to India

71% tariff lines & 72% import value (NT1)

1.1.2010 to 31.12.2013

1.1.2010 to 31.12.2018

1.1.2010 to 31.12.2013

1.1.2010 to 31.12.2018

9% tariff lines & 3% import value (NT2)

1.1.2010 to 31.12.2016

1.1.2010 to 31.12.2019

1.1.2010 to 31.12.2016

1.1.2010 to 31.12.2021

II.Sensitive Track (ST):

Coverage: 10% of tariff lines.

ASEAN 5 & India

Philippines & India

India to CLMV

CLMV to India

Reduction of tariffs to 5%:

1.1.2010 to 31.12.2016

1.1.2010 to 31.12.2019

1.1.2010 to 31.12.2016

1.1.2010 to 31.12.2021

·Products where the tariff is already at 5% and placed in the ST (Standstill lines), it was agreed that:

o50 tariff lines at MFN 5% will be at standstill;

oduties on remaining tariff lines will be reduced to 4.5% rate upon entry into force; and

osubsequent reduction to 4% rate by 31.12.2016 for ASEAN 6 and India (special arrangements for Indonesia and Thailand; and 31.12.2019 for Philippines).

III.Highly Sensitive List (HSL)

A three step modalities for tariff reduction has been adopted as follows:

·products with duties above 50% to be reduced to 50% by 31.12.2019 for ASEAN 5, 31.12.2022 for Philippines , and 31.12.2024 for CLMV;

·products with duties of 50% and below to be reduced by margin of preference (MOP) of 50% by 31.12.2019 for ASEAN 5, 31.12.2022 for Philippines , and 31.12.2024 for CLMV; and

·products with duties of 50% and below to be reduced by MOP of 25% by 31.12.2019 for ASEAN 5, 31.12.2022 for Philippines, and 31.12.2024 for CLMV.

India has placed crude and refined palm oil, coffee, black tea and pepper in the HST.

IV. Highly Sensitive Track (HST)

Tariff Line

Base Rate

AIFTA Preferential Tariffs

31.12.2019

Not later than 1 January

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

CPO

80

76

72

68

64

60

56

52

48

44

40

37.5

RPO

90

86

82

78

74

70

66

62

58

54

50

45

Coffee

100

95

90

85

80

75

70

65

60

55

50

45

Black Tea

100

90

90

85

80

75

70

65

60

55

50

45

Pepper

70

68

66

64

62

60

58

56

54

52

51

50

V. Exclusion (EL):

Threshold: 489 tariff lines and not exceeding 5% trade value (imports) on bilateral basis. Malaysia has excluded 361 tariff lines. However, Malaysian exporters can export and benefit from preferential tariff for these products, provided these products are not in India's Exclusion List.